DENVER, 3:42 PM, FRI MAY 16 | 58 POSTS IN THE LAST 24 HOURS | tips@kotaku.com | SUBMIT A TIP | RSS
AU

GameStop Raking In The Dough, Another Record Quarter

If we could do the whole birth thing all over again, we would make sure that GameStop was our uncle. Because their sales last quarter were through the roof, rising 59% from last year and totaling $1.6 billion. Hardware sales and software sales both had large gains, with the top titles being Madden NFL 08, Guitar Hero III, BioShock and Wii Play. Now we understand where GameStop got all that cash to open over 5,000 stores. You know, us.

GameStop Raises Forecast on Record Q3
[nextgeneration]

1:20 PM on Tue Nov 20 2007
By Mark Wilson
1,740 views
67 comments

Comments

  • Noooooooooooo

  • Stop buying used games! That's Gamestop's bread and butter but the publishers and developers see NONE of that money. Sure, you pay a bit more, but isn't it worth actually giving the money to people who made the game and deserve your contribution?

  • Their stores are horrible, but their online store is fantastic. Cheaper than Amazon, get the pre-order bonus if there is one, and you get it on launch unlike Amazon.

  • Apart from used games where they get most their money, what's an estimate of how much they make off a new game ?

  • Oh the humanity...

  • And still no Gamestop in my town. Bastards. It's begging for one.

  • Considering they were allowed to become the only major specialty video game store, it is not surprising.

  • they make $1.6 billion selling used games?

    woah

  • I HATE gamestop and will never buy anything from them, ever.

  • @Stormrider900: Since when do hired developers have a (significant) stake in the sales numbers of their projects? Bonuses, sure, job security, great... but the major benefactors of increased sales are the owners of the intended businesses. (And the license holders of the consoles, who get cash for every unit sold.)

    I understand your point - but it's an argument better saved for piracy issues. And if the development teams were that worried about used sales affecting their bottom line, they'd just offer non-transferable downloadable games or content that could never be resold but yet came at... at a... pre...premium price...

    hmm.

  • @brennan40:

    I work at Play N Trade Video Games in San Antonio, one of GameStop's franchise-based competitors (in fact, I'm typing this on a work PC). On average, the store makes anywhere from $3-$10 on a new game, as opposed to about 50% of the price on used games.

    Really, new games make money for the developers, but for smaller businesses like us, we have to sell used games to stay afloat. That $5 or so that we make on new doesn't get very far with rent and payroll added in.

  • speaking of bioshock, I just got an email telling me my replacement big daddy will be coming soon!

  • they may have done better this quarter but they lowered guidance on the 4th qtr, dropping the stock 6%. Still bitter I didn't buy it right when they bought EB. (And ESPECIALLY bitter about not buying Nintendo right before the Wii came out).

  • Is anyone surprised? They pretty much monopolized game stores...

  • No wonder 3 stores popped up around be within the last 6 months. They multiply like Tribbles.

  • cant imagine how much they will rake in this Q from all the great games

  • What a shock! I mean, they're only the single biggest video game retail chain in the United States.

    I don't know what it's like for folks in other areas, but here in Chicago they're pretty much the only option if you want any title that's even approaching the term "niche". (For some reason indie stores have a really tough time staying afloat here. I've never seen one last for more than a year.)

  • @thebluick:

    Lucky you. I sent in an email the day the game released because my figurine was broken and I never heard anythng back. Bastards.

  • Maybe now we can stop going there?

  • GameStop lost my business when I had to deal with their pre-order crap so often. The last straw was Super Mario Galaxy. I called to see if they were selling it on release day and I was told that if I didn't pre-order I would have to wait until the day after. I said thank you, hung up the phone, drove down the street to my local Wal-mart, and bought a nice, fresh copy from a box that hadn't even been opened yet.

  • They sell the same game three times, buying it back for less than they paid for it the previous time and getting greater profit with each subsequent sale. This really isn't surprising.

  • I doesn't really don't understand how they are doing so well. The consensus is that hardcore gamers hate them (myself included) and wouldn't casual gamers be more inclined to go to Target, Best Buy, Wal-Mart, etc...

  • I didn't mind when used games were at least 10 to 15 dollars cheaper pretty close to release. But now used games of current titles are $55 or more? What crap. They stay at the $5 dollars less than retail for what seems to be forever. It's a real scam.

    Besides that, I am a bit concerned with this pre-order garbage that DPB mentioned as well. I am no longer preordering games through them. In fact, my CoD4 is going to remain unsold, and I'm just going to transfer the fiver to a walk-in purchase. I think I might do most of my game shopping in Best Buy. They may be evil, but not AS evil.

  • @DPB:

    I get pretty miffed with the whole "pre-order on major release titles" thing myself. Super-niche and obscure titles are one thing (although I still think policy should dictate that each store gets in at least a half-dozen copies of any title regardless of pre-orders), but when I'm getting treated like I've committed some sort of faux-pas because I neglected to pre-order New Super Mario Bros. or Assassin's Creed...well that's just ridiculous.

    This type of treatment (this has included lectures) is all the more maddening considering the it's common knowledge that I can walk into any local Target or Best Buy and pick up said major release with absolutely no hassle.

  • @Stormrider900:

    thats exactly the problem, its more expensive for the exact same game.

    i worked at Gamestop until just last week. ive seen all sorts of customers and such. most dont care about the developers or anything. anyway, i have bought used too, and i dont see why it offends some people. when you buy clothing, you know it has been marked up at least 50% over what the retailer bought it for, right? at least the new games dont see a markup like this. they may treat their employees like shit (and they do!) but i dont have a problem with the way they do business.

    maybe its just because im an accountant.

  • @Dracula_Feet:

    The reason they are popular is just like any other massive company that people hate (MS, Wal-Mart, etc) is still popular: It's familiar, easy to find, and you can usually get what you want. I try to shop elsewhere for games when I can (the couple of GameCrazy's here in STL when I'm in their neck of the woods) but for some reason I always go to GameStop.

  • @DPB: The only store that had it on launch day was Wal-Mart. They should have said they didn't have the shipment yet.

  • For all the "hardcore" out there on the internet crying over the "horror" of Gamestop, there are A) employee like me who are kind and caring to the uniformed customer (be it parent or new gamer) that actually helps them with their purchase more than a Walmart can do (one of their biggest competitors) and B) there's just far more casuals and "unwashed" masses than there EVER will be the crying kids on the internet.

    Get over it guys... they are a corporate chain that is huge and run by suits,... like many other corporations in the world. Deal with it... I think Walmart has far greater evils than Gamestop and big box stores are so wide spread that general knowledge base can be quite iffy, at times. They might know quite a bit about TVs and how what cable goes where, but asking about which game is good or not and the perks of each system and you usually get a blank stare.

    $5 less on games? If you buy a lot of games,... imagine this... if you actually HAVE that discount card, you get the joy of some printed gaming material whilst dropping a duece and you might (read most likely will) save some dough off used games. $10 less is a good difference and at our store, we stand by our policy and unless you're being a real douche to us, we realize that keeping a customer happy keeps them coming back...

    Sorry for the Wall of Text that will most likely get "too long, didn't read", but you know what,... there has to be SOMETHING done right to come out #1.

  • Deal with them when you have to, don't when you don't. When I want to buy a game on launch day, I can't go to Target. They're always a day (or two) late. I don't have a Best Buy convieniently close to home, and the selection at my Wal-mart isn't all that hot. So, if I want it early, I pre-order. If I get antsy during the day, I buy it near my work and get my $5 back. They have to give it back. And, if I'm looking for a game that you can't find anywhere else, then I look in the used bin. Someday, I'll find that rogue copy of Ico that no one noticed in the bargain bin.

    Believe me, I'd much rather have a new copy, unmarred by the hands of another, but sometimes beggars can't be choosers. I'm fully aware of my other options.

  • I don't know what's so special about gamestop, I buy my game at Best Buy or Fry's Walmart...they always have it first without reserving. What's the point of gamestop.

  • I picked up unchart 3 days early at Frys and 2 days early for Time Crisis 4.

  • Image of NeoAkira NeoAkira at 02:15 PM on 11/20/07 *

    @TheKbob:

    But that means that we have to BUY the discount card to get a used game at a lower price, which kind of defeats the purpose. If gamestop makes so much money off of used games then it makes more sense for them to stop pricing them only 5 dollars less than a NEW game and mark it down 10-20 bucks, that way we'd have more incentive to buy a used game instead of a new game.

  • @TheKbob:

    Here's the thing, the only area where I feel most retailers are generally evil/bad are their personnel policies...the employees get treated like garbage.

    That being said, there are many, many policies that Gamestop has in place which are a slap in the face to both gamers and casual customers:

    • The policy of stocking based on pre-orders makes walk-in/casual purchases almost impossible at many locations.

    • The willingness to accept goods which are in some way damaged or incomplete - this creates a number of bad situations on its own.

    • The fact that in many, many cases the games which would (by Gamestop's own design) be most in need of pre-order don't even have an in-store SKU.

    Others may nitpick and quibble over minor annoyances, but I feel that the three above points are all serious and legitimate problems. And one which can, at times, make shopping at Gamestop a difficult or even annoying experience.

  • @TowelFight:

    1. cost cutting techniques. yes, its unfortunate that the average gamer is unable to pick up a game when they walk in, but i have always wondered this: if you're sure you're going to buy it, why not preorder? i have like 6 games reserved because i know im getting them. if you're not sure, then popular games will likely get more copies in a couple days later. not the day of, but its not like you wait forever. also, call the store ahead of time, see if they have it. saves time.

    2. if the employee isnt terrible, they should know that if a game even looks damaged, they need to send it back to the factory to be repaired. i cant tell you how many games i marked as defective in my time there. sometimes the employee doesnt care, sure, but you have time to return it, no questions asked, so its not a total shot in the dark.

    3. ill give you this one. i dont really understand their exact policy for putting games into our little list, but i know i cant preorder some of the things i want to and its annoying.

    a lot of it comes down to the employee. bad employees make a horrible Gamestop. good ones make the experience worth going back. i like to think mine has pretty good ones, hence my working there for a year.

    @NeoAkira:

    spend 15 on the card, buy three used games over the course of a year, done. i think i got about $200 extra or so out of my card through trades and purchases last year.

  • forgot to mention you can ask to see the disc before you buy it. if they refuse, you have a bad store and i can understand why you would abandon it.

  • y'all are missing the point. they sell ads on schoolbuses?

  • Its sad they GameStop now runs our kids transit to and from school. When will it end?

    But forreal, i can understand some of the complaints people have for gamestop, but some of them theres just no reason to be that upset over. It's like you people want to pick a fight with GameStop so you'll complain about anything.

    Case in point, the whole display case for the new game. A lot of you complain that you're getting the last copy of some new game but the case has been already opened and what not. Does it really matter? You're going to open it anyways right? They just did have the work for you. And for those of you who say "oh but the people who work there play and scratch them up!" here is my solution for you. Check the disk and see if it has scratches. The end.

    And thats just ONE complaint of many.

  • @Flashfire:

    I should clarify my thoughts on points 1 and 2 a bit:

    1. I wasn't simply referring to release day purchases, but the fact that many less than blockbuster titles will only ever be stocked at a given location based on their initial number of pre-orders, and that once their allotment of "Title X" is depleted it will never be restocked.

    I can't count the number of times I have walked into a Gamestop with a list of at least 10-15 titles I would be interested in purchasing - only to find out that none were ever carried there to begin with or they have blown through their meager supply with no more on the way.

    2. The condition that Gamestop is willing to accept used goods in is deplorable. Against my better judgment I've bought several used systems from them - all of which were defective in some way.

    If someone doesn't care about a missing case or manual - fine. But at least appease those of us who do by offering some sort of discount on "disc only" titles. Or better yet, penalize the little fuckers who lose the case, mangle the manual, and (seemingly) blow a load on the disc before they return it. Perhaps if people were getting docked credit because of merchandise that's in less than stellar shape they'd be less inclined to take such piss poor care of their stuff.

    And don't tell me it's not feasible. I lived in Japan and shopped in Den Den Town (and elsewhere) for long enough to know that high standards for returns on the part of the retailer are neither unreasonable nor unrealistic. Hell, I bought used copies of games that were over a decade old that were in better shape than many of the "display copies" sold by Gamestop.

  • This news makes me sorry I'm picking up Mass Effect on preorder from there. Bah. The first game I've ever bought there...

  • Unfortunately human wastelands such as Gamestop will continue to prosper as long as the amount of uneducated, misinformed parents and whiny kids outweighs the amount of consumers who actually think before they buy something.

    Place is a joke.

  • And just so it doesn't seem like I'm just trying to throw in my two cents with the "Gamestop is teh suxorz" crowd let me add that overall I like Gamestop, I just think there are a few serious issues that mar the overall shopping experience which need to be addressed.

  • Yeah, I bought my Orange Box "new"-- pre-opened-- but somehow, it magically worked anyway!

    Of all of the GameStop (and GameCrazy) stores around where I live that I've been to, only the ones in the mall have poor customer service. All of the others have good, knowledgeable employees that while, yes, they have to hawk their wares, are also genuinely helpful.

    What are my serious alternatives? There aren't any "locally owned" game shops in my neck of the woods, and I don't really see the advantage to fighting through cattle-like crowds in Wal-Mart or Target to go to the back of the store where I can hopefully flag someone down that has a key to the cabinet.

    Best Buy at least doesn't lock everything up, but it can take forever to find someone to actually work the register for you, and they push magazines that I'm far less interested in than Game Informer. Also, being able to pre-order can be nice, in the case of something like Rock Band or a CE.

  • I guess you could call me a gamestop fan, they've never been anything but nice to me even when i'm so far outside of the 30 day return (scrached Star Ocean: TteoT when I was level 255 and almost to the last boss), that being said, the powers that be are assholes when it comes to repricing used games:

    Example
    Bioshock new: 59.99 (still sore about the new 60 buck price point for next gen)
    Bioshock used: 49.99 (last week was 54.99)

    I guess they can't drop the price to low or else nobody in their right mind would buy used, but they keep the price inflated for so long it's annoying. Guess what...I have a kid, a mortgage, vet bills...hell I'm poor. I can't afford to pay that much (and yes I have the card, I like to have something to read while I drop the kids off at the pool) so I wait...and wait until they drop down until the 30's.

    So I guess what I'm saying is the place isn't all bad, the guys are pretty cool at my local store actually, but corporate needs to stop squeezing blood from a stone on those used games.

    (of course I'm still bitter about only getting $4 for Crackdown...but it's 4 more dollars than I'd have otherwise)



  • Yeah, I'd like to pick up Gears on the cheap used, but it's still $55. That's annoying.

  • Haha, I like how people say they hate gamestop and that they're destroying the industry and what not. If not for EB games and gamestop, seriously, how many of us would get the games we want right away? I mean, I can't even find some games I want at Wal-mart. And when I go to buy a 360? Well, wal-mart doesn't even carry the Elite, at least where I live, and the 4 wal-marts surrounding. Gamestop provides a place to get what you want.
    And the whole used games Issue? I don't see the problem, you would just be holding onto them or freaking selling them on E-bay, being no better then them at that point. And they save people a couple dollars while they're at it. I see no problem in that. Its Capitalism people, learn to live with it, its not going away any time soon. (Unless, well, you know, Hillary Clinton, who is pretty much a Socialist at heart gets in control).

  • The good news is their shares are down 10%

  • please people, stop buying games from them, or pay the extra 5 bucks and get it new.

    i'm just glad we have a play n trade where i live. i would rather give them money than Gamestop/EB

  • Image of NeoAkira NeoAkira at 03:37 PM on 11/20/07 *

    maybe gamestop wouldn't suck if they had other video game-only retailers to compete with, but since they don't and since the corporation sure as hell doesn't care about the customers, chances are that they will stay the way they are until they start to drastically lose profit. Then and only then will they change anything.